Shake Shack Picks JPMorgan And Morgan Stanley To Lead IPO

NEW YORK (Reuters) - Shake
Shack, the fast-food restaurant chain that has developed a cult
following for its 'Shackburgers', 'flat-top' hot dogs and
eponymous shakes, has selected JPMorgan Chase & Co and Morgan
Stanley to lead a proposed initial public offering, according to
people familiar with the matter.

The potential offering, which could come as soon as this year
according to the people, would be the biggest public event for a
company that started out of a hot dog kiosk in New York's Madison
Square Park in 2004.

While Shake Shack is expected to post earnings of around $20
million next year and the size of the IPO is likely to be small,
underwriting one of the biggest burger names in the United States
is a plum assignment for investment banks JPMorgan and Morgan
Stanley.

Representatives for Shake Shack, Union Square Hospitality,
JPMorgan and Morgan Stanley did not immediately respond to
requests for comment.

Shake Shack would likely be the most-followed IPO out of a string
of casual dining chains that have gone public this year. They
include El Pollo Loco Holdings Inc <loco.o>, Zoe's Kitchen
Inc <zoes.n> and Papa Murphy's Holdings Inc <frsh.o>.

Shake Shack is present in many U.S. states including New York,
New Jersey, Connecticut, Pennsylvania, Florida and Massachusetts.
It has also expanded internationally in cities such as London,
Istanbul, Moscow and Dubai.

The company does not franchise and says it has no plans to do so
in the future. Shake Shack's chief executive is Randy Garutti, a
Cornell University graduate who worked his way up at Union Square
Hospitality from general manager at its restaurants to lead Shake
Shack.

Union Square Hospitality was founded by restaurateur Danny Meyer
in 1985. It also runs other popular New York eateries, including
Blue Smoke, Gramercy Tavern and Union Square Cafe.